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Bloomberg
Lost amid the economic chaos in Venezuela, the bolivar has actually stabilised somewhat.
In the six weeks since the initial plunge after the government simultaneously carried out a massive devaluation and redenomination of the currency, it has slid just 19 percent in the black market.
That may not constitute stabilisation in most foreign-exchange markets, but in Venezuela, where hyperinflation has been ravaging the economy for months on end, it’s the closest thing to normality seen in a while.
While far from a major policy victory and possibly only ephemeral, the bolivar’s relative stability is a rare feat for Venezuela and could even help slow the breakneck pace of hyperinflation, which is forecast to reach 1 million percent this year. President Nicolas Maduro devalued the bolivar by 95 percent last month in what was perceived as a tacit acceptance of the ubiquitous black-market exchange, where most Venezuelans acquire dollars.
As part of his new economic plan, Maduro also increased the frequency of the country’s official dollar auctions known as DICOM to three a week from one. The central bank auctioned $5.3 million at 62 bolivars per dollar, the highest daily amount since the system started operating more frequently in February, according to data from Caracas-based banking consultancy Banca y Negocios.